Varian Medical Systems
) revealed that its Board of Directors has authorized repurchase
of an additional 6 million shares of its common stock between Dec
30, 2013 and Dec 31, 2014 on top of its prior repurchase
authorization of 8 million shares, initiated on Sep 29, 2012 and
expires on Dec 31, 2013.
Under the previous 8 million share repurchase authorization, VAR
has repurchased 6.05 million shares for $424.1 million until the
end of third quarter of the year. This means there are 1.95
million shares remaining to be repurchased under the repurchase
Varian posted net earnings of $1.08 per share for the fourth
quarter of fiscal 2013, which was flat compared with the
prior-year quarter and missed the Zacks Consensus Estimate by 4
cents. In fact, net earnings declined 2.4% to $117.3 million from
$120.2 million in the year-ago quarter.
However, net earnings for fiscal 2013 rose 2.6% to $438.2 million
from $427.0 million a year ago, while it increased 5.9% to $3.98
from $3.76 on per share basis, missing Varian's own expectations
of $4.00-$4.04 per share.
Revenues edged up 1.8% year-over-year to $769.9 million during
the quarter, falling short of the Zacks Consensus Estimate of
$780 million and missing the company's growth projection of 5%
for the quarter. Revenues for fiscal 2013 grew 4.8% to $2.9
VAR expects revenues to grow by 6-7% and earnings per share
between 87 and 91 cents for the first quarter of fiscal 2014. For
fiscal 2014, VAR anticipates revenues to grow in the range of
6-8% and earnings per share between $4.22 and $4.34.
Currently, Varian retains a Zacks Rank #3 (Hold). Other medical
instrument stocks that are worth a look include
Natus Medical Inc.
) with a Zacks Rank #1 (Strong Buy), and
) with a Zacks Rank #2 (Buy).
NATUS MEDICAL (BABY): Free Stock Analysis
CYNOSURE INC-A (CYNO): Free Stock Analysis
MASIMO CORP (MASI): Free Stock Analysis
VARIAN MEDICAL (VAR): Free Stock Analysis
To read this article on Zacks.com click here.